05.06.202414:03 Forex Analysis & Reviews: GBP/USD: Simple trading tips for beginner traders on June 5th (US session)

Analysis of Trades and Tips for Trading the British Pound

The specified levels were not tested in the first half of the day. Traders ignored the fairly normal UK services activity statistics, focusing instead on upcoming similar reports from the US. Expected figures include ADP employment changes, the ISM services sector business activity index, and the composite PMI. Strong figures will push the pound down, while weak statistics will likely rekindle the desire to buy the pound, continuing the upward trend after a prolonged downward correction. Regarding the intraday strategy, I plan to act based on Scenarios No. 1 and No. 2.

Buy Signal

Scenario No. 1: Today, I plan to buy the pound upon reaching the entry point around 1.2782 (the green line on the chart) with a target of rising to the 1.2823 level (the thicker green line on the chart). Around 1.2823, I will exit the buys and open sell positions in the opposite direction (expecting a move of 30-35 points in the opposite direction from the level). The rise of the pound today can be expected only in the case of weak US statistics. Important! Before buying, ensure the MACD indicator is above the zero mark and starting to rise.

Scenario No. 2: I also plan to buy the pound today in case of two consecutive tests of the 1.2762 price when the MACD indicator is in the oversold area. This will limit the pair's downward potential and lead to a market reversal upwards. Growth can be expected to the opposite levels of 1.2782 and 1.2823.

Sell Signal

Scenario No. 1: Today, I plan to sell the pound after it breaks below the 1.2762 level (the red line on the chart), leading to a quick decline in the pair. The key target for sellers will be the 1.2727 level. I will exit the sales and open buy positions immediately in the opposite direction (expecting a move of 20-25 points in the opposite direction from the level). Sellers will show strength in the case of strong US data. Important! Before selling, make sure the MACD indicator is below the zero mark and just starting to fall from it.

Scenario No. 2: I also plan to sell the pound today in case of two consecutive tests of the 1.2782 price when the MACD indicator is in the overbought area. This will limit the pair's upward potential and lead to a downward market reversal. A decline can be expected to the opposite levels of 1.2762 and 1.2727.

What's on the Chart:

• Thin green line – entry price for buying the trading instrument.
• Thick green line – estimated price for setting Take Profit or fixing profits yourself, as further growth above this level is unlikely.
• Thin red line – entry price for selling the trading instrument.
• Thick red line – estimated price for setting Take Profit or fixing profits yourself, as further decline below this level is unlikely.
• MACD indicator. When entering the market, it is important to be guided by overbought and oversold zones.

Important: Beginner traders in the forex market must be cautious when making entry decisions. It is best to stay out of the market before the release of important fundamental reports to avoid sudden price swings. If you decide to trade during news releases, always set stop orders to minimize losses. Without stop orders, you can quickly lose your entire deposit, especially if you do not use money management and trade large volumes.

And remember, successful trading requires a clear trading plan, like the one presented above. Spontaneous trading decisions based on the current market situation are initially a losing strategy for an intraday trader.